Using The DAX As "BUY" Confirmation for SPX 500
Good Morning,
I was in the chat this morning when a fellow member of TV (MartyMcFly) brought up an interesting point about the DAX. the DAX and S&P 500 are highly correlated.
SPX500 vs DAX
At the end of the previous month, a BUY signal was generated on SPX 500 ( closed above its 10 month MA ) , but we didn't get the same signal on GER 30 ( DAX)
SPX 500
DAX
DAX ( D vs 200MA)
What would be the results if we used the DAX as an additional confirmation before buying the SPY ? As you can see on the equity curve the below , the result are pretty good. Although the profit factor is lower than simply buying the SPY when > 10 moth MA , the drawdown is lower.
the 'SPY > 10 ma " system is still very reliable , but adding the DAX as an additional confirmation , may be helpful as well.
cheers
Algo
I was in the chat this morning when a fellow member of TV (MartyMcFly) brought up an interesting point about the DAX. the DAX and S&P 500 are highly correlated.
SPX500 vs DAX
At the end of the previous month, a BUY signal was generated on SPX 500 ( closed above its 10 month MA ) , but we didn't get the same signal on GER 30 ( DAX)
SPX 500
DAX
DAX ( D vs 200MA)
What would be the results if we used the DAX as an additional confirmation before buying the SPY ? As you can see on the equity curve the below , the result are pretty good. Although the profit factor is lower than simply buying the SPY when > 10 moth MA , the drawdown is lower.
the 'SPY > 10 ma " system is still very reliable , but adding the DAX as an additional confirmation , may be helpful as well.
cheers
Algo
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.